Reliance revenue jumps 25% but profit slides 22% on higher costs
Q1 FY27 revenue at ₹311,850 cr, net profit at ₹20,946 cr as finance costs rise. Segment trends mixed.
— 4 earlier stories on Reliance Industries Ltd. →What's new
- Revenue up 25.4% to ₹311,850 cr vs ₹248,660 cr YoY
- Net profit down 22.4% to ₹20,946 cr, hit by higher finance costs and normalised other income
- Operating profit before tax fell to ₹30,630 cr from ₹37,146 cr
Why this matters
Reliance's top-line strength masks a sharp profit squeeze. Finance costs are rising, and the one-time gains that flattered last year's other income are gone. Whether this pressure persists through the year is the key question.
What we're watching
- Trend in finance costs in coming quarters
- Segment-wise margin recovery, especially O2C
- Any update on Jio Platforms IPO progress
The full read
Reliance Industries posted a 25.4% revenue jump to ₹311,850 crore in Q1 FY27, but net profit fell 22.4% to ₹20,946 crore as finance costs rose and other income normalised from a year-ago quarter that carried one-time investment gains. Operating profit before tax slipped to ₹30,630 crore from ₹37,146 crore. The oil-to-chemicals segment held up, but the pressure on the bottom line is clear. The sequential comparison is not flattering either: revenue improved from ₹298,621 crore in the March quarter, yet net profit barely budged from ₹20,616 crore. This cost pressure will test whether the squeeze is cyclical or structural. With Jio's IPO on the horizon and retail still expanding, Reliance has growth engines, but margin discipline is the metric that matters.
Questions answered
- Why did Reliance's net profit fall despite strong revenue growth?
- Higher finance costs and a normalisation of other income – which included one-time investment gains in the year-ago quarter – compressed net profit. Operating profit before tax also declined to ₹30,630 crore from ₹37,146 crore.
- How did the oil-to-chemicals (O2C) segment perform?
- The oil-to-chemicals segment delivered a resilient performance, but overall operating profit before tax fell. Detailed segment data is available in the filing, showing O2C trends alongside digital services and retail expansion.
- What is the revenue figure for the quarter?
- Consolidated revenue from operations was ₹311,850 crore for the quarter ended June 30, 2026, up 25.4% from ₹248,660 crore a year earlier.
- When were the results approved?
- The board of directors approved the results at a meeting held on July 17, 2026.
- How does this quarter compare to the prior quarter?
- In the March 2026 quarter, Reliance reported sales of ₹298,621 crore and net profit of ₹20,616 crore. The current quarter's revenue is higher, but net profit is only slightly above that level, indicating margin pressure.
Reliance Industries Ltd.
Latest quarter · Jun 2026
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All notes on RELIANCE →- 17 Jul 2026 · 7:11 PM IST Reliance revenue jumps 25% but profit slides 22% on higher costs
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